| A | B |
|---|
| Channel of Distribution/Coventional Channel of Interdepedence | The complete sequence of marketing organizations involved in bringing a product from the producer to the ultimate consumer or organizational user. |
| Merchant Intermediary | A channel intermediary, such as a wholesaler or a retailer, that takes title to the product. |
| Agent Intermediary | A channel intermediary that does not take title to the product. Bring buyers and sellers together or otherwise help complete a transaction. |
| Bulk-breaking Function | An activity, performed by marketing intermediaries, consisting of buying products in relatively large quantities and selling in smaller quantities. |
| Assorting Function | An activity, performed by marketing intermediaries, consisting of combining products purchased from several manufacturers to create assortments. |
| Selling Function | Activities, performed by intermediaries, that are associated with communicating ideas and making a sale and thus effecting the transfer of ownership of a product. |
| Buying Function | Activities, performed by intermediaries, that are associated with making a purchase and thus effecting the transfer of ownership of a product. |
| Service Function | Activities, performed by intermediaries, that increase the efficiency and effectiveness of the exchange process. Repair services and management services provided by intermediaries are examples. |
| Credit Function | Provision of credit to another member of a distribution channel. |
| Risk-taking Function | Assumption of the responsibility for losses when the future is uncertain. |
| The Manufacture - Retailer - Consumer Channel | When the retailer involved is a sizable organization, such as a discount chain like Wal-Mart |
| Manufacturer - Wholesaler - Retailer - Consumer Channel | Most commonly used distribution for goods (Ex. Beer) |
| Channels that Include Agents | American Airlines - Travel Agent - Consumer |
| Disintemediation | The compression, or "shortening", of marketing channels b/c one or more intermediaries have been eliminated. |
| Infomediary | An intermediary that serves as an electronic information broker. (Ex. Auto - By - Tel/Autotrader.com) |
| Vertical Exchange/Industry Vertical | Specializes in using the Internet to connect and assist numerous buyers and numerous sellers in a vertical market. |
| Vertical Marketing Exchange | A network of vertically aligned establishments that are managed professionally as centrally administered distribution systems. (Economies of scale, integration, coordination, synchronization) |
| Corporate Vertical Marketing System | A vertical marketing system in which two or more channel members are connected through ownership (Sherwin Williams) |
| Contractual Vertical Marketing System | Channel coordination and leadership are specfied in a contractual agreement. |
| Retailer Cooperative Organization | A group of independent retailers, such as Certfied Grocers. |
| Wholesaler- Sponsored Voluntary Chain | Initiated by wholesaler, that links a group of independent retailers in a relationship with the wholesale supplier. (Ace Hardware) |
| Franchise | Between a franchisor and a franchisee by which the franchisee distributes the franchisor's product. (Subway, Wendy's) Also Franchisor will supply supplies, marketing strategies, etc. |
| Adminstered Strategic Alliance | Strong channel leader coordiantes marketing activities at all levels in the channel through planning and management of a mutually beneficial program (Ralph Lauren) |
| Marketing Mix Strategy | The 4 P's Apply in the aspect of planning the channel of distribution. |
| Organizational Resources | A company's existing channels of distribution for its other products are a tremendous resource -- they may be the main determinant in the selection of a channel of distribution. |
| External Enviromental Factors | Market Characteristics, Consumer Preferences, The nautre and availability of Intermediaries. |
| Intensive Distribution | Seeks to obtain maximum product exposure at the retail level. (Gasoline, Gum, and convenience goods) |
| Selective Distribution | Restricts sale of a product to a limited number of outlets (Burton Snow Boards) |
| Extensive Distribution | Expects maximum sales efforts or expects to gain something from the prestige or efficiency of the retail outlet (Rolls Royce) |
| Channel Cooperation/Channel Interdependency | Exists when the marketing objectives and strategies of two channel members are harmonious |
| Channel Conflict | Exists when channel members have disagreements and their relationship is atagonistic. |
| Channel Power | The extent to which a channel member is able to influence the behavior of another channel member. |
| Channel Leader | A distribution channel member that is able to exert power and influence over other channel members, also known as a channel captain. |
| Tying Contract | An agreement tying the purchase of one product to the purchase of another. The buyer who wishes to purchase a certain product is required by the seller to purchase additional products, whether the buyer wants to purchase those products. |
